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Israel - TAXES ACCOUNTING |
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Corporate tax
Tax rate for resident companies |
The corporate tax rate is 34% in 2005.
Corporate tax rate in 2006: 32% ; in 2007: 30%
Company tax rates ranging from 0% to 25% for approved companies.
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Taxe rate on long-term capital gains |
Capital gains tax rate: 25%/34%
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System governing groups of companies and dividends paid by subsidiaries to their parent companies |
It is based on a 25% withholding tax. Residents companies are exempted from this levy when they receive dividends from other residents companies.
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Tax rate on branches |
Corporate tax rate.
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Income tax
Fiscal year |
The fiscal year begins on January 1-st and ends on December 31 of the same year.
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Income tax rate |
Rate is progressive from 10% to 49% divided in 5 brackets:
Tax Shedule, monthly income in Shekel
Tax schedule 2005:
| Tax % | Income (IS) | | 10% | 1-50,400 | | 23% | 50,401-89,040 | | 32% | 89,041-133,680 | | 37% | 133,681-238,680 | | 39% | 238,681-413,400 | | 49% | 413,401 and over |
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VAT rates
Standard rates |
A single rate of 18%.
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Reduced rates |
The export of goods and certains services are either zero-rated or exempt from VAT.
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Other important taxes
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Name of tax |
Rate |
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Stamp duties
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rate varies between 0.4% and 3%
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Succession
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No levy
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Donations
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No levy
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Accounting
Introduction
The israelian accounting refers to the regulations from the American institute, called "the American Institute of Certified Public Accountants" ( AICPA).
In this country, the accounting practices are similar to the american ones.
General accounting principles
CONSOLIDATED BALANCE SHEET
CIRCULATING ASSETS
-Liquid assets
-Short-term investments
-Debts
-Inventories
TOTAL LIQUID ASSETS
INVESTMENTS
PHYSICAL IMMOBILIZATIONS
-Cost
-Amortization
IMMATERIAL IMMOBILIZATIONS
PROFIT AND LOSS ACCOUNT
1) Sales
2) Cost of goods sold
3) Depenses of search and development
-Total of depenses
-Subsidies and participations
4) Administrative, commercial and marketing depenses
-Sales and marketing
-General and administrative depenses
5) Running income
6) Financial depenses
7) other incomes
8) Profit before income taxes
9) Income taxes
10) Shares on associated companies profits
11) Net income
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Obligations and publications
Financial accounts include a balance sheet, a profit and loss account, a cash flow account.
Certification and auditing
The control of accounts is made by the external auditors in the company.
Professionals and representative organizations
The representative body is "the Institute of Certified Public Accountants in Israel" created in 1931.
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Last modified in
January 2003
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